"n Sync Suits Settled; Zomba, Bmg Extend Pact

LOS ANGELES-With its lawsuit behind it, "N Sync's new life on Jive Records will begin Jan. 12, when the act's new single, "Bye, Bye, Bye," goes to radio. It will be followed by a new album, "No Strings Attached," to be released March 7 by Jive.
A settlement in the lawsuit by BMG Entertainment; the group's first manager, Louis Pearlman; and Pearlman's Trans Continental Group against "N Sync and the Zomba Group, as well as the band's countersuit, was announced Dec. 29, 1999.
The settlement talks also led to an extension of BMG's North American distribution deal with Jive parent Zomba Records. Initially set to expire in June 2000, it has been extended for at least a year, sources say.
The settlement and the Zomba extension relieve some of the pressure on BMG Entertainment president/CEO Strauss Zelnick. There had been strong speculation that Zomba would leave BMG to link with Sony upon expiration of its original pact, or even buy EMI's distribution network to handle its own product. Zomba releases account for 5.5% of BMG's U.S. market share.
BMG remains embroiled in negotiations with Arista Records president Clive Davis over a successor.
According to a source, "BMG is pretty happy about how it worked out, because they've been able to get significant royalties on future "N Sync albums, separate and apart from the extended distribution agreement."
This is believed to be to compensate the company in part for what it will lose in "N Sync's move from BMG-owned RCA to Jive. For "N Sync, the switch means being signed directly to Jive. Its deal with RCA had been through a production deal with Trans Continental, which the group sought to have nullified.
Many observers felt that RCA was a victim in the litigation, believing that "N Sync's motivation in switching labels was to end its deal with Trans Continental.
"N Sync's self-titled album has sold more than 7.6 million units in the U.S., according to SoundScan.
Although none of the litigants would comment, a statement released by the involved parties confirms the settlement and says that "N Sync will "control" its name. Sources could not answer whether "N Sync now owns the name or simply can continue to use it. Ownership of the "N Sync trademark was a major issue in the original lawsuit filed by BMG, Trans Continental, and Pearlman Oct. 12 in U.S. District Court in Orlando, Fla. (Billboard, Oct. 23, 1999).
The $150 million suit was filed as a reaction to "N Sync's attempt to move from RCA Records to Jive Records in September.
While the involved parties have insisted from the start that a settlement was preferable to a drawn-out courtroom battle, their desires were hastened by an order by Orlando-based U.S. District Judge Ann Conway for the litigants